Our Fiscal Year begins July 1 and runs through June 30 of the following calendar year.

The Commonwealth of Virginia requires all localities to meet certain budget guidelines, as outlined in Sections 15.2-2500 to 15.2-2513 of the Code of Virginia (1950), as amended. According to these guidelines, all localities within Virginia must have a fiscal year beginning on July 1 and ending on June 30. Back to top.

What is the relationship between the Two Year Plan and the annual Budget?

The Two Year Plan supports Board priorities and provides direction to staff. It also brings together the three major components of the County budget – schools, general government, and capital projects. This process is not designed to be an approval of the fiscal year’s operating budget, but helps create a framework within which the fiscal year’s budget development will take place. Back to top.

What is the Revenue Sharing Agreement and how does it affect revenues?

The Revenue Sharing Agreement requires that the County and the City both make an annual contribution to a Revenue and Economic Growth Sharing Fund.

The Revenue Sharing Agreement was entered into by Albemarle County and the City of Charlottesville in 1982. This agreement was reached in return for total immunity from any annexation attempts by the City. At that time, the City was proposing a significant annexation of County territory at that time to increase the City tax base.

The contribution to the fund is defined by a formula based on the City and County populations, “true real property tax rates” as determined by the Virginia Department of Taxation, and the assessed value of real property.

Based on this Revenue Sharing Agreement formula, the County has been required to pay the City a revenue sharing amount each year since 1983 in an amount that is approximately equal to revenue generated by ten cents of the County’s tax rate. The revenue sharing payment in FY18 was $15.855 million. Back to top.

Can the County discontinue the Revenue Sharing Agreement?

The Revenue Sharing Agreement is legally binding and must remain in effect until one of the following occurs:

The City and County are consolidated or otherwise combined into a single political subdivision, or

The concept of independent cities is altered by state law in such manner that real property in the City becomes part of the County tax base, or

The City and County agree to cancel or change the agreement. Back to top.

What is the Five-Year Financial Plan?

The local government Five-Year Financial Plan is a long term planning tool that provides the Board of Supervisors with reasonable projections for the next five years. These projections allow the Board to provide staff with direction on their long range goals and priorities.

The Plan is based on a set of assumptions about how the County’s revenues and expenditures are likely to change over time, based on the best information available at the time the Plan is reviewed. While the plan is not a budget document, it sets directions that will influence budget decisions in the years to come. The plan is reviewed and updated on an annual basis. Back to top.

What are “unfunded mandates” and how have they affected Albemarle County’s budget?

Unfunded mandates are instances where the state or federal government establishes laws and/or regulations that require the County to incur costs that are not reimbursed by the state or federal government.

A general example would be if Congress required new voting machines and provided no funding to assist local governments with the purchase of these machines. These mandates require the County to divert local tax dollars to support federal and state programs. An example of a federal mandate is the No Child Left Behind (NCLB) Act of 2001. The School Division must spend money to fund testing coordinators for each school and technology support staff and data and reporting staff to comply with these mandates. Back to top.

How are property taxes set by the County?

General property taxes are based on the assessed value of real and personal property owned by businesses, individuals, and public service corporations. Real estate reassessments in Albemarle County are done on an annual basis. Property is assessed at 100% of fair market value as required by Virginia law. The assessed value is used to calculate property taxes, which are the product of the assessed value and the tax rate, with tax rates being established annually by the Board of Supervisors. Both real and personal property are assessed at 100% valuation with tax rates applied per $100 of assessed value. Real estate and personal property taxes are paid in 2 installments due June 5 and December 5. General property taxes consist of real estate, personal property, mobile home, and machinery and tools taxes.

For more information about the County’s budget or budget process, email your comments and questions regarding the budget to budget@albemarle.org. Questions and comments can also be directed to the County Board of Supervisors via e-mail at bos@albemarle.org. Visit the budget website at www.albemarle.org/budget to get up-to-date information on all budget meetings, work sessions, and public engagement opportunities. Back to top.

What is the difference between “recurring funds” and “one-time money”?

Recurring funds are revenues that occur annually and can be counted on. Recurring funds are like a person’s salary: you know how much you have available to spend each month and can plan your budget based on continuing to receive those revenues.

One-Time funds are monies that do not recur. They may be funds from the state or federal government that are able to be used for a single fiscal year, but cannot be counted on the next year. In personal finance, one-time funds are like getting a bonus or a gift from your grandmother. They increase your revenue in the short-term, but not over the long-term.

Recurring funds and One-Time funds must be spent differently. An ongoing budget cannot be maintained with one-time funds because they do not continue. When the one-time funds run out, cuts will have to be made.

One-time funds are often used for capital expenditures, such as the repair/upgrade of facilities or purchase of items, as these are “one-time” costs. Salary and benefits, on the other hand, are recurring expenses and need recurring funds. Back to top.

How does the County’s tax compare to similar jurisdictions in Virginia?

Albemarle County’s real estate tax rate is among the lower end of the Top 20 most populated counties in Virginia. More information on comparative real tax rates can be found on page 62 of the budget document.Back to top.

What role do the county’s vision, mission and strategic goals play in the budget development process?

The County’s Strategic Plan establishes goals and timelines that respond to community priorities. The Plan informs the County’s budgeting process. Specific actions, programs, capital investments, staffing requirements, and funding levels have been developed in response to the needs identified in the Strategic Plan. Critical decisions regarding resource allocation during the budget process are evaluated for consistency with and support of the identified strategic priorities. You can find more details in the Strategic Plan Chapter of the budget document. Back to top.

How can I review the County’s Budget?

The County’s Recommended and Approved Budgets, both current and for past years, are available for review on the County’s website, www.albemarle.org/budget. The budgets are in PDF format with bookmarks for easier viewing and downloading. In addition to the online budget, a copy of the FY18 budget document is available at local libraries and in the County Executive's Office for public viewing. Bound print and/or CD-ROM copies of the budget are available for purchase in the County Executive's Office.Back to top.

How do we determine the components and costs of our employee benefits packages?

Major components of the Albemarle County benefit package are health, dental and life insurance plans, and retirement benefits through the Virginia Retirement System. These are comparable to the benefits packages offered by other major employers, including local governments, school systems, and businesses. In order to provide cost-effective and valued benefits, we review our health and dental plans on an annual basis by gathering data from other localities and by looking at the plan design and costs to both employees and the County.Back to top.